Global Crossing (Nasdaq: GLBC) has acquired global video services provider Genesis Networks, paying an aggregate consideration of approximately $27 million, including $15 million in connection with the repayment of existing debt.
The market for these services is growing. Industry research firm Infonetics Research forecasts that worldwide revenue for video services, including IPTV, cable video and satellite video services, will top $250 billion in 2014. And, according to the Visual Networking Index (VNI), an industry benchmark report produced by Cisco, 3D and HD Internet video will comprise 46 percent of consumer Internet video traffic by 2014.
Founded in 2001, Genesis Networks is considered an innovator in the broadcast video over IP and satellite solutions market. Its purpose-built network stretches across 70 cities on five continents and links important international media centers through 225 on-net locations. By contrast, the Global Crossing network offers access to more than 700 cities around the globe and a strong presence in Latin America, a new market for Genesis Networks. For Global Crossing, this acquisition provides opportunities to attract new customers and expand service offerings into vertical markets that require high-performance, rich-media, video-based delivery, such as healthcare, cinema, music, gaming, government and distance learning. The purchase of Genesis Networks supports Global Crossing's strategy of investing in emerging areas, deepening penetration into vertical markets, furthering the differentiation of solutions and services, expanding customer relationships, and leveraging the company's global assets to seize new opportunities. With this acquisition, Global Crossing gains Genesis Networks' proprietary IRIS customer interface, which provides a unique "on-demand" capability that allows customers direct access and control over their global media distribution network, enabling self-provisioning and monitoring of all aspects of their transmission services. IRIS features will be integrated into uCommand®, Global Crossing's existing online customer service portal. In addition, Global Crossing gains the Genesis Networks Operations Center in Manhattan that will monitor and manage the entire global video network.
Global Crossing will operate this as a distinct business unit inside of Global Crossing, led by Mike Antonovich of Genesis Networks. "Genesis is excited to join Global Crossing, an established market leader that brings new opportunities and allows us to leverage a truly global network," said Antonovich, who will become the managing director of this new unit. "Global Crossing and Genesis share a strong dedication to innovation and a commitment to excellent customer service. Our combined teams, talents and technologies will enable truly world-class media and broadcast solutions on a global network."
